Im in the mortgage biz, banks did not voluntarily give people loans they knew could not afford.
**********************************************
BS! In most cases it was the loan officers modifying (falsifying) the income and expense data on apps/HUD-1’s to get people qualified ... and even if it came from a broker the banks still knew of and failed to stop the fraud because they were only in it for the quick 5% commission or such passing the known bad/fraudulent loan onto the end buyer of the product Wall Street was crafting out of it.
I know of dozens of instances where Mexicans , without SSN’s! churned cheap homes , selling them to relatives over and over every 6-12 months ,, never making even payment number one and dealing with the same broker and/or bank again and again ,, taking a 1100 sq. ft. $60k duplex to over $200k and then fleeing to Mexico with the cash or simply not using that name again ...
Not is “MOST CASES”, you dont know what you are talking about.
Cry BS all you want. I have been extremely involved in all facets of this induastry for almost 20 years. I have spent time on Capitol Hill and also with GW BUSH regarding mortgage issues. I am also past President of several mortgage industry associations.
I now what I am talking about. You have only your opinion.
I am not stating that FRAUD was not happeneing. But dont use words like “most cases” like you have first hand experience.
Mexicans did get lots of mortgages, but that was the program sir. It was allowed under Fannie Mae.
Loan officers did not set those guidelines.
What you fail to understand is that if a customer qualified for the loans that the FED GOV and Fannie Mae endorsed, you were legally obligated to provide it or you could be sued for discrimination in lending.
The GOV is the problem...